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Showing posts from July, 2018
Where is my job? Every economy is required to maintain the full employment level of resources but very often economies fail to achieve it. The most common reasons are policy lacunae from Government. But what is unheard off is that irrational choices is the number one reason to name.This seems ridiculous at first site because economists assume rationality to prevail everywhere. But just think off a bureaucrat who lacks formal training in economics but is always tasked with preparing the draft of Government's proposed legislation/policy framework on creating employment in economy. The bureaucrat's lack of knowledge often reflects in the policy lacunae that governments make. The first one is that bureaucrat does not believe in power of market to allocate resources, including human capital, to various sectors/activities in efficient way and rather has firm belief that government's bureaucratic mechanism is the most efficient one for such task. This irrational belief is re